Potential merger between Comparex Africa, BEE company Business Connexion Solutions

Johannesburg, 23 Oct 2003

Comparex Holdings issued a cautionary announcement today following confirmation that management is negotiating a merger between Comparex Africa (Pty) Ltd and black empowered company Business Connexion Solutions Holdings (Pty) Ltd.

The successful conclusion of this merger would result in Business Connexion owning 25.01% of issued share capital of Comparex Africa and would create the largest black empowered full-service IT company in SA with meaningful representation throughout the country.

Business Connexion, a private company with revenues of R368 million for the year ended 28 February 2003, is led by CEO Benjamin Mophatlane and delivers IT solutions to its clients based principally on Microsoft technology. Business Connexion is the largest Microsoft Solutions Provider in SA and was awarded "channel partner of the year" for Africa for the years 2001, 2002 and 2003.

In November 2002, Comparex announced its intention to renew its search for a black empowerment shareholder. Early in 2003 the company outlined requirements of a potential partner and began discussions with several interested parties. Comparex Africa CEO, Peter Watt, said that the successful partner would be active in the IT industry, would have a strong management team as well as competent technical employees and would already be conducting a significant amount of business.

Over the last five years Comparex Africa has pursued an active transformation strategy, creating and accelerating development opportunities for previously disadvantaged individuals. Significant progress has been made in this regard and Comparex Africa is now poised to rank as one of the more successfully empowered enterprises within the local ICT industry.

Comparex Africa

JSE-listed Comparex Holdings comprises principally of the business of Comparex Africa, the leading provider of ICT-based business solutions that make its clients more successful. Based on a strong client-centric approach, Comparex Africa delivers technology business solutions from the full range of competencies within its group that align its clients` strategic and operational business needs. Comparex Africa`s client-centric structure stems from its Systems Integration Model that allows for flexibility and close client relationships.

Offering business solutions that address all areas of its clients business, Comparex Africa services organisations within the corporate and large enterprise, government and parastatal markets as well as within the medium enterprise sector in all vertical markets. For more information, visit us at www.comparexafrica.co.za.

Business Connexion

Vision: Business Connexion aims to be the most skilled, experienced and innovative Microsoft Certified Solution Provider in Africa.

Mission: We help customers maximise their return on investment in Microsoft technology designing, building and managing solutions which unleash business value.

Business Connexion creates and delivers IT solutions based on Microsoft technology. Its focus is to help organisations unlock efficiencies, future potential and profit through the innovative application of Microsoft technology and software; often achieving maximum leverage from existing technology investments.

From the outset, Business Connexion positioned itself as a truly South African IT company, and believes in Africa and the capacity of Africans to fashion their own solutions and build their own future and hence is one of the founding companies of the Proudly South African campaign. www.bcx.co.za.